Diversified services firm Marsh & McLennan (MMC) has continued its strong start to 2012, beating market estimates to post a second-quarter operating income of $US518 million ($488.73 million).

Capitalising on global insurers lifting rates to recoup natural catastrophe losses, MMC increased consolidated revenue to $US3 billion ($2.84 billion), up 3% on the previous corresponding quarter. This followed a 5.8% rise in revenue to $US3.05 billion ($2.87 billion) during the first quarter of 2012.

CEO Brian Duperreault says MMC has built on a solid first quarter from all business segments.

“We produced revenue growth in each of our operating companies as well as excellent growth in operating income in both Risk and Insurance Services and Consulting, with meaningful margin improvement,” Mr Duperreault said.

“Our operating results in the second quarter demonstrate that we continue to track favourably against our long-term performance goals.”

Risk and Insurance Services saw operating income rise 12% to $US401 million ($378.34 million) on revenue of $US1.7 billion ($1.6 billion), up 5%. Broker Marsh’s revenue was $US1.4 billion ($1.32 billion), up 4%, while reinsurance broker Guy Carpenter increased revenue by 7% to $US275 million ($259.46 million).

Consultancy group Mercer’s second-quarter revenue grew by 2% to $US960 million ($905.76 million), accounting for most of the $US1.3 billion ($1.22 billion) revenue recorded by MMC’s consulting division.